No. 362, November 1999

American Companies in Japan

TEXTILES AND APPAREL

Women's career clothing and sportswear designer LIZ CLAIBORNE INC.
licensed manufacturing and marketing rights to its new Emma James
brand to JUSCO CO., LTD. This line of dresses, jackets, skirts and
blouses for working women costs about half what comparable Liz
Claiborne clothing does. Jusco  the majority owner of the
company that is opening freestanding and in-store Liz Claiborne and
Dana Buchman shops in Japan  will modify the Emma Jones
collection of 200 to 250 pieces for Japanese women. The clothing
should be available at 20 stores by yearend 1999, including in-store
shops in four Jusco outlets in Chiba and Kanagawa prefectures. By
2001, Jusco expects 120 stores to be carrying the Emma Jones line and
generating sales of $53.8 million.

By February 2000, a new line of Japanese-designed B.V.D.-brand
T-shirts, sweat suits, dresses and other "innerwear" clothing will be
in specialty stores across Japan. FUJI SPINNING CO., LTD., the master
licensee of the B.V.D. name for the last 27 years, arranged this
expansion of its business with UNION UNDERWEAR CO., INC. of Bowling
Green, Kentucky. FUJI APPAREL CO., LTD. will make the products. They
will be distributed by an affiliate of WORLD CO., LTD., a
manufacturer of women's wear that supplies some 7,000 outlets.

ASHWORTH, INC., a Carlsbad, California designer of upscale men's
and women's golf-inspired sportswear, has decided to work with KOSUGI
SANGYO CO., LTD. to bring its clothing to Japan. The Tokyo apparel
maker/wholesaler, which already produces such sportswear brands as
Jantzen and Jack Nicklaus, will import some products from Ashworth
and manufacture other licensed items designed specifically for the
Japanese market. Kosugi Sangyo will distribute these lines to better
golf specialty and other stores beginning in the spring of 2000.

The Rusty and the R. lines of surfing-motif T-shirts, trunks and
other activewear for men and women will be introduced in Japan in the
spring of 2000. Irvine, California-based C&C PARTNERS, LTD., the
master licensee of these labels, sublicensed the brands to trader
SUMITOMO CORP., which turned around and worked out a deal with NIKKI
CO., LTD. The Japanese side is projecting first-year sales at a very
strong $5.7 million.

The Eden Prairie, Minnesota firm that is reintroducing the Norton
brand of merchandise, named after the famous British motorcycle, has
signed an agreement with INGRAM CO., LTD. Under it, the Japanese
licensing company will act as an agent for NORTON MOTORCYCLES, INC.,
licensing various manufacturers to make clothing, including leather
jackets and T-shirts, and such related products as gloves, boots and
helmets under the Norton name for the Japanese market. Norton
Motorcycles will maintain complete design and quality control over
the licensed products.

Japan has been a major market for footwear manufacturer WOLVERINE
WORLD WIDE, INC. since 1965 when Hush Puppies shoes were introduced
there. The Rockford, Michigan firm's line now also includes Wolverine
boots and shoes, Coleman footgear, Caterpillar footwear and Merrell
outdoor footwear. Next to be added are 15 styles of Harley-Davidson
boots and shoes for men, women and children. Wolverine World Wide
gave exclusive distribution rights to these products to INTERNATIONAL
TRADING CORP. under a five-year deal. The Harley-Davidson footwear,
which will retail for $70 to $250, will be available through the
motorcycle manufacturer's 100-plus dealerships, the 31 ABC-Mart
stores owned and operated by International Trading and independent
retailers.

Despite prices of $285 to $375 a pair, the Red Wing and the Irish
Setter brands of outdoor footwear have been hits among young adults
in Japan. In an attempt to broaden its market among these buyers, RED
WING SHOE CO. of Red Wing, Minnesota introduced its less-expensive
WORX line through MIDORI INTERNATIONAL CO., LTD. Eight ankle-high,
midhigh and high styles of shoes and boots are available. The WORX
line retails for $120 to $150 a pair.